Chemical Engineering Plant Economics MCQ Question with Answer

Chemical Engineering Plant Economics MCQ with detailed explanation for interview, entrance and competitive exams. Explanation are given for understanding.

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Question No : 15
__________ of depreciation calculation accounts for the interest on investment.

Straight line method
Declining balance
Both (A) and (B)
Neither (A) nor (B)

Question No : 16
Purchased cost of equipments for a chemical process plant ranges from __________ percent of the fixed capital investment.

10 to 20
20 to 40
45 to 60
65 to 75

Question No : 17
A reactor having a salvage value of Rs. 10000 is estimated to have a service life of 10 years. The annual interest rate is 10%. The original cost of the reactor was Rs. 80000. The book value of the reactor after 5 years using sinking fund depreciation method will be Rs.


Question No : 18
The __________ of a chemical company can be obtained directly from the balance sheet as the difference between current assets and current liabilities.

Cash ratio
Net working capital
Current ratio
Liquids assets

Question No : 19
According to six-tenths-factor rule, if the cost of a given unit at one capacity is known, then the cost of similar unit with '' times the capacity of the first unit is approximately equal to __________ times the cost of the initial unit.


Question No : 20
Accumulated sum at the end of 5 years, if Rs. 10000 is invested now at 10% interest per annum on a compound basis is Rs.


Question No : 21
Which of the following is the costliest material of construction used in pressure vessel construction?

Low alloy steel
High alloy steel